This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Stop procrastinating; you’re only hurting yourself
It is never too early to start planning and preparing for your financial future. The best time to start preparing for your financial future is right now. Most people wait until later in life to start taking the subject of finance seriously.
Sometimes it works out for people, but most times, it doesn’t work out for people. Furthermore, most people who delay financial planning often experience regret. It may not seem to be the most important subject in your life right now to educate yourself on, but if you look around you, money affects people’s lives around the globe in a multitude of ways – every single day.
Educating yourself on finance is a way to invest in your well-being, future, and present. The earlier you start learning about personal finance, the more control you will have over your present and future financial situation.
Saving & Investing
A good rule of thumb is to save at least 15% – 25% (I always recommend 25% or more) of your income. Saving a consistent percentage of your income is a way to invest in yourself and your future self.
When you save money, you are conveying to yourself that you value your well-being and financial future. Saving money is a healthy financial habit that prepares you for unexpected circumstances. You also will experience peace of mind and feelings of security when you start saving money.
After you get into the habit of saving money (which only takes a few weeks), it is time to make your money work for you 24/7 by investing it.
Many books offer advice on investing. If you do not know anything about investing money, then I suggest reading articles or books on the topic at a beginner level. I also suggest visiting with a financial advisor (which is free at many firms or banks) to learn about some different investment options that would fit your income and goals. Always do your own homework, though, to ensure you make financially prudent decisions that work best for you.
I like to think of investing as a tool to earn more money without having to do any work; you save a percentage of your income, and put it in an investment account (such as a mutual fund), and let compound interest work to your advantage.
Giving
Giving a percentage of your money, time, and resources helps you avoid living a selfish life; it also keeps you grounded and grateful for all you have. Many people feel they must give to churches and charities, but this is not the case. You don’t have to give to specific types of organizations such as charities and churches; you can give your money to people, causes, academic institutions, positive programs, events, etc. Never place a limit on where and how you can give of your time, money, and resources.
Giving can be as simple as treating someone out to lunch, getting groceries for a family on welfare or temporarily tight on resources, or buying someone you know who is stressed out a care basket or a massage. Furthermore, you do not have to give monetary resources; you can also give physical resources (e.g., clothes, shoes, furniture, books, etc.) or intangible resources (e.g., offering sound career advice, helping someone with their resume, giving your time, etc.)
The goal of giving is to help others and show kindness. When you give, it not only increases your self-esteem and makes you feel good about yourself but can also create and initiate a domino effect. Giving to others can soften the toughest hearts of people and make them more receptive and willing to do the same for others; this essentially means that when you give to others, you are not only giving directly to them, but you are also giving to all the people who will be positively affected by the first person you gave to.
Spending
Life is meant to be enjoyed, and it should be enjoyed. Spending money is a good thing, especially when you have money and resources to expend.
The best piece of advice I can give you is to spend less than you bring in when it comes to spending. If you follow this rule, it will take you amply far. Another good tip for spending is to think for 24–72 hours before making purchases (especially bigger ones); this has helped me determine if I genuinely desire or need something. Sometimes I completely forget about an item when I take the time to consider the purchase before immediately buying it.
There should be a balance between buying things you need and buying things you desire. You don’t want to over-indulge, but you also don’t want to under-indulge either.
Depending on your income, you can set a certain percentage of your income that you intend to spend (e.g., 10%); your goals and expenses will ultimately determine what percentage you decide on.
Spending should not involve feelings of guilt; it should be a fun activity. If you are experiencing feelings of guilt, take some time to reflect to determine what changes and adjustments need to be made to your budget or yourself to eradicate these feelings.
Retirement
What age would you like to retire?
Determine what age this is, and then decide how much money you want to have saved up and invested when you retire.
Finally, use an investment calculator (type in “retirement calculator” or “investment calculator” in google) to see how much money you will need to save each month or per year based on your current age.
If you are young, this may seem like a silly thing to do, but I guarantee you will not feel that way when you are retired at the age you anticipated with the amount of money you aimed to have saved up.
Be different from what the average person does, and start working on your financial future today. You may want to stop working for others at 30 years old or 40 years old or maybe even at the age of 70; it doesn’t matter what age you want to “retire;” it matters what you do now to make sure you retire when you want to retire.
You don’t have to be a millionaire or be rich to live a financially sound and pleasurable life. Of course, you can have this financial status if you would like, but the primary point I want to convey is that having money and doing the things you desire can be made possible through simple planning and discipline.
Start today!
Check Out These
25 Extreme Personal Finance Tips
Which Comes 1st: The Emergency Fund or Investing?
If You’re Not Investing, You’re Losing – Big Time
Everything You Need To Know About Credit Cards
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.